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HELPING MAXIMISE AFFORDABILITY FOR SELF-EMPLOYED CUSTOMERS

Special feature, written by Dan Watson at Precise Mortgages

The recent announcement that there are now more people in work in the UK than ever before is something to be welcomed. According to figures released by the Office of National Statistics, the country hit a new record employment rate of 75.8% and 32.53m people in work in November 2018, the highest level since modern records began in 1971.

 

However, these figures only tell half the story. The UK also has a record number of self-employed workers, with the statistics showing there are now 4.85m people working for themselves.

 

Self-employed workers can take many forms – including professional landlords, entrepreneurs, freelancers and contractors – one thing they can all have in common is difficultly in securing a residential or buy to let mortgage or a second charge loan. The reason many self-employed workers struggle to get the finance they need is often because lenders perceive their financial situation as being too complex or their income as too irregular. It means there could be a large number of potential borrowers unable to access the finance they need.

 

Fortunately, lenders such as Precise Mortgages can help provide solutions to the growing number of customers that fall outside of mainstream lenders’ criteria. Our range of Residential and Buy to Let Mortgages and Second Charge Loans have been designed with self-employed customers in mind, including those with less than perfect credit profiles such as defaults, CCJs, DMPs and missed payments. Plus applicants only need to have been trading for a minimum of 12 months.

 

If your self-employed customer wants a Residential Mortgage, they could benefit from:

  •  1 year’s accounts or tax year overview with either SA302 or HMRC tax calculation accepted.
  •  Up to 85% LTV available.
  •  100% of pension contribution, plus car allowance, taken as additional income.
  •  Depreciating profits can be considered with a strong rationale.
  •  Products suitable for customers with less than perfect credit profiles, including those with CCJs, defaults, DMPS and mortgage arrears.

 

 

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